AIR TRAVEL-Africa Case of Blind Nationalists Ego!

It’s been over 60 years, since the continent first political independence in Sub Saharan Africa by a tiny nation called Gold Coast now Ghana with her illustrious and mover of today Africa Union in 1957 and 1963. The continent and her various nations of about 56 have kept to the artificial boundaries with policies that have nothing to do with the nationals but seek to protect their former masters interests till today.

Today our attention is on Air travels in Africa after several decades of political independence, with different national airlines with its attendance political interferences, mediocre governance and scarcity outlook of how best to serve the African people, still struggles with abnormal high cost, poor infrastructure, taxes, restrictions etc.

This is a narrative by a Nairobi professor Evaristus Irandu a “costly show of patriotism.” To prop those carriers up, countries may be reluctant to grant easy access to an outsider.

Whiles in Europe, North America, Asia and Middle East more than 45% of its citizens uses air travels, in Africa is less than 5%. It is less than 2% intra Africa and overall 5%. The average cost of air travel within Europe or outbound to North America or Asia is cheaper than average cost of travels within Africa or from Africa to any of the above destinations.

According to IATA data forecast of 2017 to 2037, Routes to, from and within Asia-Pacific will see an extra 2.35 billion annual passengers by 2037, for a total market size of 3.9 billion passengers.

The North American region will grow by a CAGR of 2.4% annually and in 2037 will carry a total of 1.4 billion passengers, an additional 527 million passengers.

Europe will grow at a CAGR of 2.0%, and will see an additional 611 million passengers. The total market will be 1.9 billion passengers.

Latin American markets will grow by a CAGR of 3.6%, serving a total of 731 million passengers, an additional 371 million passengers annually compared to today.

The Middle East will grow strongly with a CAGR of 4.4% and will see an extra 290 million passengers on routes to, from and within the region by 2037. The total market size will be 501 million passengers.

Africa will grow by a CAGR of 4.6%. By 2037 it will see an extra 199 million passengers for a total market of 334 million passengers. These are very disturbing due to many incoherent policies and poor continental collaborative approach for a continent of over 1.3 billion people.

Top among the challenges are as follows:

1. High taxes- in Africa various government quickest way is to tax everything without adequate scientific research to measure the effect on the economic value chain. There is no growth or productivity inspired policy to long term taxing from the spinoff of the activities of production. For example, if there are more avenues for the people to make money, it will be easier to tax incrementally to services the accompanied capital expenditure. The attitude of government in Africa need to shift towards growth than crowding out policies. The more interventions to encourage SMEs and entrepreneurship, there will be growth and the numbers will see astronomically surge.
2. Barrier to entry- every country want to have its own airlines to serve as national pride, but we forget that, there is something in basic economics called Economy of Scale and Comparative Advantage and also principles of synergy. There has been brutal nationalists pool back to consolidate aviation in Africa to foster integration and free market to spark continental agenda for growth. Will it matter, if, for example Ethiopian Air, RwandAir, South African Air, Côte d’Ivoire adopted by the 56 countries as continental business where AU makes a continental investment for the benefit of all the other nations? Again, for example South Africa becoming centre for capital market, Nigeria as Manufacturing hub (agriculture value chain), Kenya as Tech Hub, Ghana as a Trade Hub, Egypt as a centre of Tourism, DRC natural resource hub etc? This will not only make the ACFTA Powerful but will make Africa command her place in the world. Our people will not be seen as burgers and look down when travel. 1.3 billion people are enough to create massive trade integration with a potential population growth up to 2 billion in the next 3 decades with everything natural resources at its disposal need this urgently.
3. Poor infrastructure- the least said about this, the better. We can’t compete with super standard and massive investment in aviation infrastructure in recent times by Middle East, Asia, as for Europe and America, they got it right for over 100 years and keep improving. Africa must as matter of need formulate continental aviation infrastructure development plan with a consolidated airlines to reduce the hurdles people go through as compared to other citizens elsewhere. A consolidated aviation model can help build massive airports across Africa from total earnings from the consolidation with massive private sector driven for high standards of management to make profit and pay taxes to governments to cater for other social needs.
4. Restrictions- Air space restrictions continue to hamper growth and has kept cost of travel so high and absurd for common sense to comprehend. The Forty-four African nations signed on to a 1999 agreement promising to promote competitive markets and remove regulatory barriers. But to date, few have actually implemented the plan, known as the Yamoussoukro Decision, this is yet to see full implementation to significantly improved and make it worthwhile for the greater good of the people. What really is hampering this to take full effect after 21 years? Basic question, to what end is leadership.if it can’t impact positively on the people those leaders lead? Europe for that which most of African leaders take instructions from have liberalized their airspace making it easier for intra air travels,more local airlines,cutting down cost, providing convenience for their people,yet our African leaders go to Paris,London,Berlin and say Yes Sir to punitive instruction to keep their own people in total hurdle.
5. Low passengers- just 2% of global average according to Jambojet CEO on low budget airlines operations in Africa. Africans even with the above improved, still may not able to afford air travels because of low income as compared to India, China, Indonesia and elsewhere.This demands for new approach and a deliberate policy to implement humanist solutions to get more people up to the middle income status. Nigeria has the biggest population in Africa, only about 2 million are able to afford basic luxury as compared to India of around 24 million in the middle income bracket. As for DRC is just a tale of a nightmare.The total number of air travel in India compared to Nigeria is fantastically shameful 341 million passengers in India to 15 million passengers in Nigeria. The Indian figure is even more than the entire continent numbers for air travel. This is in all honesty incomprehensible after several decades of different policies by elite learned leadership in Africa.
6. Currency issues- All 56 nation states in Africa rely on the USD for all economic projections. It makes it extremely difficult to transit from one part of Africa to the other with a local currency. For example Nigeria has the biggest market, so by default, the naira ought to be dominant currency in Africa but sadly, the Naira can’t even cross Benin Republic. This makes it so frustrating for an average African to travel to another Africa nations either for vacation, tourism, trade or even for some social activities. This has made most Africans traveling to Europe, Middle East and Asia as a preferred destinations, thereby impacting our economies adversely.

This is one of the solutions a start up which myself and other selfless Africans called KuBitX have sort to solve by creating a simple solution to aid currency swap within Africa to foster tourism and trade among Africans. It is a noble course which need support to expand to more countries in Africa leveraging on the Blockchain technology. Find more about this startup https://neironix.io/news/blogs/view?id=813.

Air travel is faster, convenient and it is a smart way to develop Africa,with ACFTA in motion. It will help us reduce the scary road accident in Africa by far. According to the UN 650 people are killed daily in Africa through road accidents, making the continent most deadliest globally.

Even though aviation accidents are terrific when it occurs, but with improved technology, the incident of occurrence is less and controlled as against road. In all, Africa need massive infrastructure from Road, Train, Water and Aviation, if we are committed to create a society that will bring hope to the growing number of human population. In the next three decades, Africa will have the largest number of humans on earth, with average age of 19, the need to double up our continental integration is not to be overemphasized.

An improved aviation sector will not only affect Africa positively but will have a global impact and with a happy world, less dead’s on the Mediterranean by many African youth in search for better living conditions in Europe.

An improved Africa is no more about Africans but it is a collective responsibility for the world we have today, with increasing global nationalist trends.

In concluding, America with GDP of about $21 trillion, a population of about 360 million as compared to entire Africa’s population of over 1.3 billion people with a combine GDP of around $3 trillion, America has about four major airlines with a powerful manufacturer Boing.

Europe GDP is about 20.2 trillion with a combined population of 750 million has four major airlines dominating the airspace with a major manufacturer Airbus.

Africa need no political correctness or territorial supremacy in today’s globalized world but we need to make decisions based on economic relevance for the African people. How can we possibly compete with 56 different airlines, buying the aircraft from either Europe or America and still make the best in revenue in the industry?

Past empires dominated on territorial policies, today, it is more to do with economic relevance, which is why China with massive population,wealth and technological innovation, still operates more on economic common sense than political correctness.

We can’t make quantum leap with same ideological mindset of scarcity sold to us centuries ago and still compete with nationalist trend in recent times. Africa must deploy African ccentric solutions purely for the interest of Africa. It make no sense for a country such as Gambia, Sierra Leone,Benin Republic, Togo,Burundi,Chad,Cape Verde etc,with a combined population of less than 60 million go solo on global competition without a continental protection for the least countries in terms of economy, population, resources by the bigger ones as it is done by the European Union.

A well African centric aviation strategy will not only make other global players partner or collaborate but also create a win for the citizens to have good taste of life as their compatriots across the globe.

A piece written by ERIC ANNAN, A Pan African Entrepreneur on a mission; changing the narrative.